artificial intelligence UK

The Economics Impact of AI

According to the report by PWC, despite discussion on social media about the things that AI will be able to achieve, the majority of studies that have sought to answer this question have focused on the risks of artificial intelligence to employment. More recently some researchers have recognised the potential that this automation has to boost productivity,1,2 leading to more efficient production of goods, more affordable products, and higher real incomes.

Our study aims to take further steps towards capturing the full economic potential of AI and the opportunities that it presents. In addition to the more traditionally examined productivity channel, we identify and measure impacts on the household consumption side of the economy through product enhancements resulting from AI.

Click here to download the full report.

Growing UK’s AI Industry

This demonstrates a steady increase in the number of enrolments, at Masters and Doctorate level at least, however, estimates both of potential and predicted growth in the use of AI in the UK would require significant increases in numbers at both levels to be realised in practice.

Applying forecast worldwide percentage growth rates in AI to UK enrolment numbers between now and 2020 suggests that a significant increase would be needed. The low, medium and high growth rate scenarios used are 15%,73 36%,74 and 62%,75 respectively. This methodology is crude, but goes some way to illustrating the scale of demand, see table below.

Demand for talent already outstrips supply, and average remuneration for data scientists and machine learning experts has increased substantially.

As above, AI in the UK is already used in a broad range of organisations and sectors. However, to fully realise the potential of AI in the UK, additional sectors and different categories of organisation, with a mixed ecosystem of AI provider companies, small, medium-sized and large. All of these different organisations will need access to similar sets of skills, whether by hiring
directly or contracting for services.

Click here to download the full report.